Hidden Gem: PSU Stock Achieves Impressive 62 Per Cent Post-Tax Profit Increase, Secures Rs 91,000 Crore Orders and Announces Dividend!
The stock has a PE of 5.50x, an ROE of 89.69 per cent and a ROCE of 60 per cent.
Coal India Ltd, a major domestic coal company, plans to invest Rs 91,000 crore in various projects by 2025-26, which includes diversification and mine development. They will spend Rs 36,000 crore on coal gasification projects, Rs 46,000 crore on mining developers cum operators and other contracts and the remaining amount on other projects. The company has also signed agreements with BHEL, GAIL and IOCL to promote indigenous technology and set up coal and lignite gasification projects.
Coal India`s (CIL) profit after tax (PAT) for FY 2022-23 posted a massive 62 per cent growth at Rs. 28,125 compared to Rs 17,378 crore in FY22. Higher volume sales and increased premiums in e-auction bolstered the company’s profitability.
CIL recorded a PBT of Rs 7,642 crore and PAT of Rs 5,528 crore in Q4FY23. The company’s board announced a final dividend of Rs 4 per share.
The company’s net sales were the highest ever for Q4 as well as for the entire FY23. Net sales at Rs. 35,161 crore in Q4FY23 were up by 17 per cent over Q4FY22. For FY22, the net sales were Rs 1,27,627 crore, a jump of 27 person cent compared to FY22.
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Coal India is a large-cap stock and a part of the S&P BSE 100 Index. The company is almost debt free having a current debt of Rs 3,916 crore which is just 2 per cent of its market cap. The company has been maintaining a healthy dividend payout of 60.8 per cent with a dividend yield of 8.53 per cent.
As of March 2023, it can be noted that 4 mutual funds have chosen to invest in Coal India.
1) Life Insurance Corporation of India (11 per cent)
2) Cpse Exchange Traded Scheme (Cpse Etf) (3.03 per cent)
3) Hdfc Trustee Company Ltd. A/C Hdfc Balanced Advantage Fund (2.37 per cent)
4) Parag Parikh Flexi Cap Fund (1.18 per cent)
The stock has a PE of 5.50x, an ROE of 89.69 per cent and a ROCE of 60 per cent. On Monday, shares of Coal India plunged 1.87 per cent to Rs 232.90 per share. Investors should keep an eye on this PSU stock under the radar.